In recent years, investigators in Congress have ramped up scrutiny of government contractors and other recipients of federal funds. This trend has only accelerated in the current Congress, with Republican-led committees pursuing expansive inquiries targeting a wide variety of federal contractors and grantees. Along with familiar allegations of waste or
Continue Reading Government Contractors Face Unique Risks Amid Growing Congressional Scrutinygovernment contracts
New Restrictions on Defense Contractors Retaining Outside Consultants Will Take Effect This Month
In January 2025, Covington issued a client alert noting that the National Defense Authorization Act (“NDAA”) for Fiscal Year (“FY”) 2025, which sets annual spending and policy for the Pentagon, introduced new China-related prohibitions on defense contractors and their consultants. The provision is finally set to take effect on June…
Continue Reading New Restrictions on Defense Contractors Retaining Outside Consultants Will Take Effect This MonthThe 6 Top Compliance Mistakes by Corporations in an Election Year
By Andrew Garrahan & Kimberly Railey on
Posted in Campaign Finance
An election year brings ample opportunities for corporations to participate in the political process, and the current political environment can create enormous pressures to do so. But with these opportunities and pressures come legal risks and compliance burdens. Given the differing and complex rules across jurisdictions, companies should be aware…
Continue Reading The 6 Top Compliance Mistakes by Corporations in an Election YearAdministration Targets Lobbying by Federal Grantees with New Presidential Memorandum
Posted in Enforcement
Federal contractors, grantees, borrowers, and others receiving federal funds face a variety of restrictions on their use of those funds for political purposes, including for lobbying. A new presidential memorandum issued last week by President Trump highlights one of those restrictions, 31 U.S.C. § 1352, also known as the…
Continue Reading Administration Targets Lobbying by Federal Grantees with New Presidential MemorandumDon’t Get Stuck in the Revolving Door: A Primer on Federal Post-Government Employment Restrictions
Posted in Government Ethics
With the end of the Biden Administration, the start of the Trump 2.0 Administration, and a change of power in the U.S. House, the steady churn of high-skill professionals moving in and out of government positions has reached an all-time high. Indeed, beyond the typical cadre of newly unemployed political…
Continue Reading Don’t Get Stuck in the Revolving Door: A Primer on Federal Post-Government Employment RestrictionsNew Law Appears to Restrict Defense Contractors from Retaining Consultants Who Lobby for Chinese Military Companies
Posted in Government Ethics, Lobbying Compliance
Under a newly enacted law, beginning June 30, 2026, defense contractors risk losing all future contracts with the Defense Department if they engage outside consultants that lobby for certain Chinese companies. On December 23, 2024, President Biden signed the National Defense Authorization Act (“NDAA”) for Fiscal Year (“FY”) 2025…
Continue Reading New Law Appears to Restrict Defense Contractors from Retaining Consultants Who Lobby for Chinese Military Companies